Depreciation Essays & Research Papers

Best Depreciation Essays

﻿Associate Level Material
Assignment Form
Use the following form to address the five methods of computing book depreciation for health care organizations:
QUESTION
ANSWER – Do not forget to list references at the bottom of the paper. Write a minimum of 30 words for each area listed.
Straight Line Depreciation:
No salvage
Salvage
The simplest most commonly used depreciation method. The straight line depreciation method assigns an equal or even amount of depreciation expense over...

1. What are at least four depreciation methods that are available to a company?
There is the Activity Method, Straight-line Method, Sum-of-the-Years'-Digits Method and the Declining-Balance Method.
2. What are the similarities and the differences?
The Activity Method, which is also known as the variable charge or units of production method. With this method, we consider the productivity and not the passage of time. The life of the asset is considered by the output and the input....

﻿Question:
Back in Boston, Steve has been busy creating and managing his new company, Teton Mountaineering (TM), which is based out of a small town in Wyoming. In the process of doing so, TM has acquired various types of assets. Below is a list of assets acquired during 2010:
Asset
Cost
Date Place in Service
Office equipment
$10,000
02/03/2010
Machinery
$560,000
07/22/2010
Used delivery truck*
$15,000
08/17/2010
*Not considered a luxury automobile, thus not subject to the luxury automobile...

Depreciation Methods
Depreciation is the accounting process of allocating the cost of tangible assets to expense in a systematic and rational manner to those periods expected to benefit from the use of the asset.
Factors Involved in the Depreciation Process
1. What depreciable base is to be used for the asset?
2. What is the asset’s useful life?
3. What method of cost apportionment is best for the asset?
Depreciable Base for the Asset
The base established for depreciation is a...

929 Words | 5 Pages

All Depreciation Essays

Depreciation Essay
A method of accelerated depreciation, in which double the straight-line depreciation amount is taken the first year and then that same percentage, is applied to the un-depreciated amount in subsequent years is called double-declining-balance-method.
Depreciation methods that provide a higher depreciation charge in the first year of an asset’s life and gradually decreasing charges in subsequent years are called “accelerated depreciation methods”. This may...

This memorandum provides the financial positions of Pemsah’s and Sihathor’s farm after one year of harvest. Part I discusses the policies and procedures for the statement of operations, the corn flows statement, and performance measures. Part II consists of the policies and procedures for the statement of position, the performance measures for statement of position, and the effects of the mice problem on all three statements.
PART I
Policies and Procedures for Statement of Operations
We...

17. Howarth Manufacturing Company purchased a lathe on June 30, 2007, at a cost of $80,000. The residual value of the lathe was estimated to be $5,000 at the end of a five-year life. The lathe was sold on March 31, 2011, for $17,000. Howarth uses the straight-line depreciation method for all of its plant and equipment. Partial-year depreciation is calculated based on the number of months the asset is in service. Prepare the journal entry to record the sale.
Assuming the company’s year end is...

1. The primary cause of the current system to fail is the use of a single burden rate. Burden costs of the testing rooms as well as other costs such as admin were grouped into a single cost pool and then divided by the total labor dollars. This resulted to a single burden rate of 145% of direct labor dollars (cost driver). This method is not appropriate for Seligram because the information on the case present that direct labor hours and machine hours vary by product line and activity. In...

MFRS 116
Malaysian Financial Reporting Standard 116
Property, Plant and Equipment
This version includes amendments resulting from MFRSs with effective dates no later than 1 January 2012.
Amendments with an effective date later than 1 January 2012 MFRS 116 has been amended by MFRS 13 Fair Value Measurement*. As those amendments have an effective date after 1 January 2012 they are not included in this edition.
*
effective date 1 January 2013
559
MFRS 116
CONTENTS paragraphs...

﻿
Q.1. One of the company’s technology patents is about to expire, including a likely rush of product entries from the competition. Currently, the product line is projected to have a stagnant sales of 1 million units for the next seven years from 2008 to 2015. The unit price is expected to decrease slightly by 1 percent per year during the same period.
The profitability of this product is estimated to be $1,166,000 in 2008, as indicated is the following table.
Simplified Income Statement...

﻿INTRODUCTION
Depreciation expense is an accounting and financial reporting practice, used primarily by businesses that pay tax on income. On the income statement, this expense appears as a charge against income, that is, it is subtracted from sales revenues to produce a lower reported income. Over the years and at different periods in time, depreciation has meant different things to different people. According to International Accounting Standard (IAS) depreciation is the allocation of the...

Task 1
i. After knee surgery, your trainer tells you to return to your jogging program slowly. He suggests jogging for 12 minute each day for the first week. Each week thereafter, he suggests that you increase that time by 6 minutes per day. How many weeks will it be before you are up to jogging 60 minutes per day?
Solution:
(12, 18, 24, 30…… 60)
T1 = 12, T2 = 18, T3=24, T4 = 30, Tn = 60
T2 – T1 = T3 – T2
18 – 12 = 24 – 18
6 = 6
This above is arithemetic sequence....

﻿Question 1
1 out of 1 points
Which of the following disclosures are optional under IAS 12?
Selected Answer:
b.
a numerical reconciliation between the average effective tax rate and the applicable tax rate, disclosing also the basis of calculating the applicable tax rate
Correct Answer:
b.
a numerical reconciliation between the average effective tax rate and the applicable tax rate, disclosing also the basis of calculating the applicable tax rate
Question 2
0 out of 1 points...

Nature & Essence Of Depreciation
* Depreciation is the term used in accounting to define allocation of cost of fixed assets over the years during which these assets are being used by the business
* Adding up depreciation charged to expenses during all the period of fixed assets usage we will get its cost less salvage (residual) value
* We can say that depreciation is a process, the substance of which is a recognition that the asset wears out or decreases in value while time...

Ciclon de alicante
How to win outside the soccesfield
Content
The absolute goal of Ciclón de Alicante is to become a major soccer club in Spain.
But how?
The stadium
• Q: What is the impact of the sale of the stadium transaction on Ciclón’s 2003 Income Statement and Statement of Cash Flows (under the Indirect Method), and on its Balance Sheet for the year ended on December 31th, 2003? Items to be addressed cash payment of $ 100 million cost of building the new stadium was $ 20 million...

One of the things that analysts and investors frequently look for while analyzing a company is the capital expenditure. With many Indian companies on a growth track, capex activities like building a new factory, buying new machinery etc are constantly going on. But with purchase of new assets comes the frequently heard term i.e. depreciation! All of us must have heard about depreciation and know that it is deducted before arriving at Net Profit. However, not many of us are aware of its...

The word 'Depreciation' has been derived from the Latin word 'Depretium' which means 'decline in price' or 'value'. Depreciation relates to fixed assets which loose value on account of usage. Therefore 'Depreciation' means decline in value of fixed assets on account of usage.
Definitions:
Depreciation may be defined as the permanent and continuing diminution in the quality, quantity or the value of an asset.William Pickles
Depreciation in the shrinkage in the value of an asset at a given date...

|
A. Diaz Company was organized on January 1. During the first year of operations, the following plant asset expenditures and receipts were recorded in random order.
| Debits |
1. | Cost of filling and grading the land | $4,000 |
2. | Full payment to building contractor | 700,000 |
3. | Real estate taxes on land paid for the current year | 5,000 |
4. | Cost of real estate purchased as a plant site (land $100,000 and building $45,000) | 145,000 |
5. | Excavation costs for new...

Depreciation: Airplanes and Garbage Trucks
Part I: Airplanes
Assume that on January 1, 2005, each of the three airlines purchases a new Boeing 757 for $75 million. Each airline estimates that the residual value will be 5% of cost. Each airline uses the average depreciation period that is consistent with its policies as stated in the Appendix, found on page 3. On January 1, 2009, each firm sells the plane. First, assume that Northwest sells its plane for $55 million, Delta sells its plane...

(10-8) NPVs, IRRs, and MIRRs for Independent Projects
Edelman Engineering is considering including two pieces of equipment, a truck and an overhead pulley system, in this year’s capital budget. The projects are independent. The cash outlay for the truck is $17,100 and that for the pulley system is $22,430. The firm’s cost of capital is 14%. After-tax cash flows, including depreciation, are as follows:
Year Truck Pulley
1 $5,100 $7,500
2 $5,100 $7,500
3 $5,100 $7,500
4 $5,100 $7,500
5...

A variety of depreciation methods are used to allocate the cost of an asset to all of the accounting periods benefited by the use of the asset. Your client has just purchased a piece of equipment for $100,000. Explain the concept of depreciation. Which of the following depreciation methods would you recommend: straight-line depreciation, double declining balance method, or an alternative method?
This concept is to "observe the service life of the equipment with a professional judgment and...

Sum of the Years' Digits Method of Depreciation
Sum of the years' digits method of depreciation is one of the accelerated depreciation techniques which are based on the assumption that assets are generally more productive when they are new and their productivity decreases as they become old. The formula to calculate depreciation under SYD method is:
SYD Depreciation =
Depreciable Base × Remaining Useful Life
Sum of the Years' Digits
In the above formula, depreciable base is the difference...

Developing and Relevant Cash Flows For Clark Upholstery Company’s Machine Renewal or Replacement decision
Bo Humphries , chief financial officer of Clark upholstery company, expects the firm’s net operating profit after taxes for the next 5 years to be as shown in the following table.
Year Net operating profit after taxes
1 $100,000
2...

Financial Accounting
Depreciation at Delta Airlines & Singapore Airlines
(Solution to Case #2)
24th November, 2009
1. Calculate the annual depreciation expense that Delta and Singapore would record for each $100 gross value of aircraft.
a. Delta:
i. Prior to July 1, 1986 the Delta airline assets were depreciated using Straight Line Method at 10% for 10 years for a salvage value of 10%.
Depreciation Expense = (Cost of Asset – Salvage Value) / number of year...

iDempiere Fixed Asset
User Manual
Created By
Edwin Ang
Created On
June 12, 2012
Version
0.1
Introduction
The iDempiere Fixed Asset extension package is developed based on the work of these three
remarkable men:
1. Robert Klein, who developed the first ever Fixed Assets extension for Compiere
2. Teo Sarca, who modernized Robert Klein's work to use Adempiere more modern document
structure. His work was however not properly documented and was influenced with his country...

Comprehensive Problem
Introduction:
Betty, whose tax rate is 33%, is in the business of breeding and racing horses. Except for the transactions below, she has no other sales or exchanges and she has no unrecaptured net Sec. 1231 losses. Consider the following transactions that occur during the year:
* A building with an adjusted basis of $300,000 is destroyed by fire. Insurance proceeds of $500,000 are received, but Betty does not plan to replace the building. The building was built 12...

Accounting Questions – Depreciation
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Week 2 Assignment
Exercise E9-1
A. Explain the application of the cost principle in determining the acquisition cost of plant assets.
The cost principle requires that all plant assets are recorded at cost, therefore, the cost consists of all expenditures necessary to acquire the assets and make them ready for their intended use.
B. List the numbers of the foregoing transactions, and opposite indicate the account title to which each expenditure should be debited.
1. $5,000 – Land
2....

Memorandum
To:
From:
Subject: Depreciation Value of your Special Purpose Machine
Date:
Congratulations on your purchase of this special purpose machine. With every purchase of a new machinery comes the depreciation value of the machine. In order to report the value of this machine, we first must figure out the total amount paid for your machine. It says here you purchased the machine for an invoice price of $1,200,000 and the freight cost was $6000 and the cost for installation was...

Differentiating Depreciation Methods
Straight-line method of depreciation is where the depreciation is charged as long as you have an asset. However, an accelerated method of depreciation is where the depreciation that you have charged the amount will decline over a period of time. In straight-line method in order for you to get the depreciation amount the asset is subtracted from its cost. In the mean time, accelerated method is charged in the beginning of the
life time but in the end...

CORPORATE FINANCE EXERCISE 2012-2013 ---------------------------------------------------------------------------------------------------------------------------------CHAPTER 4. ASSETS IN A COMPANY
EXERCISE 1 In order to run the business effectively, Enterprise X purchased a set of 4 computers by the beginning of Year N+1. Its purchasing price is 15 million VND per item (excluding VAT). The total transportation and testing cost is 5 million VND. Their estimated useful life is 5 years....

Chapter 17: Valuation and Capital Budgeting for the Levered Firm
17.1 Honda and GM are competing to sell a fleet of 25 cars to Hertz. Hertz fully depreciates all of its rental cars over five years using the straight-line method. The firm expects the fleet of 25 cars to generate $100,000 per year in earnings before taxes and depreciation for five years. Hertz is an all-equity firm in the 34-percent tax bracket. The required return on the firm’s unlevered equity is 10 percent, and the new...

Buildings, machinery, equipment, furniture, fixtures, computers, outdoor lighting, parking lots, cars, and trucks are examples of assets that will last for more than one year, but will not last indefinitely. Over time, these assets depreciate. Depreciation is defined as a non-cash expense that reduces the value of an asset as a result of physical or functional factors over time. Therefore, the costs of the fixed assets should be recorded as an expense over their useful lives, since they...

DETERMINING A DEPRECIATION POLICY [IFRS for SME’s: Section 17]
IFRS for SMEs defines depreciation as the systematic allocation depreciable amount of an asset over its useful life, Depreciation is often described as the amount by which the economic value embedded in the asset diminishes through its use, namely, the estimated cost of using the asset in the process of generating income or carrying out the operating activities of the entity.
Many practicing applies the depreciation based on...

Mattel
Property, Plant, and Equipment
Property, plant, and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is computed using the straight-line method over estimated useful lives of 10 to 40 years for buildings, 3 to 10 years for machinery and equipment, and 10 to 20 years, not to exceed the lease term, for leasehold improvements. Tools, dies, and molds are amortized using the straight-line method over 3 years. Estimated useful lives are periodically...

Depreciation of Fixed Assets
Depreciation
A business may acquire fixed assets such as land, buildings, machinery, office equipment, delivery equipment and natural resources (e.g. a piece if mining land)to help in the process of its operations to earn revenue in order to make a profit. Such assets, by their very nature, provide benefits to the business for more than one financial year or period. In fact, when a business buys a fixed asset at a certain cost (say $10,000), it is actually...

RICS Valuation Faculty
The Depreciated Replacement Cost Method of Valuation for Financial Reporting
Valuation Information Paper 10
Produced in association with
Valuation Information Paper No. 10 The DRC Method of Valuation for Financial Reporting
Acknowledgements RICS would like to thank Kingston University School of Surveying for their help in preparation of this Paper. Extracts from the ‘International Valuation Standards 2007’ are reproduced in this publication with the...

Assignment Questions
Question 1
Frank Crosby (who has never owned or run a business before) started a lawn mowing
business (Crosby’s Cutters) as a temporary job/business which he intended to run until he
started his business degree at the University of Woop Woop in Semester 2, 2014. To start the
business on 1 April 2014, he deposited $1,000 into a new bank account opened in the name
of the business. The $1,000 consisted of a $600 loan from his father and $400 of his own
money. Frank...

ELEMENTS OF DEPRECIATION COMPUTATION
Depreciation accounting may be defined as a systematic procedure for allocating the cost of a long-lived asset over its useful life. The determination of the depreciation expense of a period depends on three basic elements. These are:
• Depreciation Base. The cost to be allocated over the period of use is known as the depreciation base. This consists of the initial purchase cost of the asset minus any salvage value expected at the time of retirement...

Title: Discuss the importance of depreciation expenses.
Depreciation as a concept and in practice plays a very important role in a company's cash flow hence in funding. The reason's are basically two, firstly because depreciation is a way of self finance for an organization and secondly because is a way of decreasing taxes that the government claims as the company doesn't have to pay taxes on depreciation which consequently enlarges the cash flow of the company.
As a term depreciation in...

ACCTNG 3402 – Financial Accounting and Reporting II Assignment due February 13, 2013
Spring, 2013
Depreciation: Airplanes and Garbage Trucks
Your answers to the questions below should be clear, well-written, free of grammar and spelling errors, double-spaced with margins of at least one inch on all sides, and word-processed. In preparing this assignment, you may discuss the issues with each other or with anyone else, but your written answers must be your own work. If you need to quote...

Assignment 9 Estimating Cash Flows
Due date: November 20, 2011 Instruction: Please submit your assignment as an attachment by midnight on the due date
Solve all problems in the Excel file provided.
Problem 1 . Regency Integrated Chips (RIC), a large Nashville-based technology company is evaluating a new project to manufacture a new chip. a. b. The project’s estimated economic life is 5 years. RIC’s marketing vice-president believes that annual sales would be 30,000 units if the units were...

Depreciation is the decline in the future economic benefits of a depreciable non-current asset through wear and tear and obsolescence. It is an allocation process. It can be calculated by two main methods, each reflecting in a distinct prospect in the way the asset is used. Depreciation is to be treated as an estimated expense that does not set aside cash for the replacement of a non-current asset. In determining the cost of acquisition of the lathes, any capital expenditure made must be...

﻿ACCT332
Quiz 1
Last Name___________________ First Name ________________ Section#____________________
1. Diversified Industries sells electronic products in reusable containers. Customers pay a deposit for each container. The deposit is equal to the container's cost. Customers receive a refund when the container is returned. During 2012, deposits collected on containers shipped were $350,000. Deposits are forfeited if containers are not returned in 18 months. During 2012, $250,000 was...

New Economy Transport (A)
p. 182The New Economy Transport Company (NETCO) was formed in 1955 to carry cargo and passengers between ports in the Pacific Northwest and Alaska. By 2008 its fleet had grown to four vessels, including a small dry-cargo vessel, the Vital Spark.
The Vital Spark is 25 years old and badly in need of an overhaul. Peter Handy, the finance director, has just been presented with a proposal that would require the following expenditures:
Mr. Handy believes that...

Hello, I need answer Math for Business and Finance Read the Isntructions first : Examination Number 06044200 Math for Business and Finance Instructions : Complete the following exam by answering the questions and compiling youtr answers into a words-processing document. Be certain to indicate the proper question number before each answer. Remember to show your work if an answer requires a mathematical solution. It's 25 questions.
1. On november 1, 2009 Broom company received a bank statement...

The concept and practice of depreciation and depletion play an integral part in a company's cash flow and profit or loss statements. Depreciation, according to investopedia is a method of allocating the cost of a tangible asset over its useful life. Depletion is very similar to depreciation with very subtle differences, the first one being what is depreciated verses depleted. All assets (except land) are depreciated but the assets with natural resources are depleted. The methods on how...

Discussion Q’s
Why might the companies be using different depreciation methods?
Average age of Delta’s aircraft = 8.8yrs; Average age of Sing Aircraft = 5.1yrs. The useful life of an airplane may be much less for Singapore since one of their competitive advantages is flying a modern fleet.
How could you argue for Delta changing its depreciation assumptions? Against?
Perhaps Delta changes its assumptions because technologically newer aircraft now tend to last longer than technologically older...

Depreciation at Delta Air Lines and Singapore Airlines
Acct 531 – Intermediate Finance Acct 1 SECTION 1 – 13WQ
Instructor: John V. Merle, MBA
February 27, 2013
Emma Waage
Roarke Stone
Tim Gould
Introduction
Depreciation expense is the way that the use of an asset is matched with the revenue that is generated from the asset on the income statement during the time period being reported. Each asset used in a business has a useful life as disclosed by the company’s...

Unit 3
Acquisitions and Payment
Balls and Bats, Inc. purchased equipment on January 1, 2005, at a cost of $100,000. The estimated useful life is 4 years with a salvage value of $10,000.
The purchase of long-lived assets are daily, quarterly and yearly occurrences for many corporations. The cost allocation of the asset is shown through the method of depreciation a company uses. The method a company chooses to incorporate should be one that most effectively matches expenses with the...

﻿Point of View
This case study is discussed from Paperco, Inc. point of view of whether they should avail the tax benefits and cost savings in replacing the mechanical drying equipment.
Recommendation
Based on the analysis below in this memo, Paperco should purchase new mechanical drying equipment now in advance in anticipation of the passage of new tax legislation. Purchasing the equipment now maintains a positive Net Present Value for the capital project if the legislation is not...

Depreciation at Delta Air Lines and Singapore Airlines
UAA – ACCT 650 Seminar in Executive Uses of Accounting Dr. Fred Barbee
Financial Reporting
Yeah!
MB
A
MBA
Why study this case?
l To
“compare and contrast” depreciation assumptions from two airlines that . . .
l l
Are in some ways alike, and In other ways vastly different
5
Why Look at an Airline?
l PP&E
for airlines usually comprise greater than 50% of total assets. of one airline are substantially...

Depreciation is how companies recapture the cost of a long-term asset. Through depreciation, companies transfer the asset’s cost from the balance sheet to the income statement over a period of time. The type of asset, its useful life and the depreciation method used determines the length of time. Since accumulated depreciation reduces the value of the asset on the balance sheet, accelerated depreciation impacts income statement and balance sheet-based financial ratios.
Sponsored Link
How To Do...

U.S. GAAP vs. IFRS on Depreciation
Generally, U.S GAAP and IFRS both view depreciation as allocation of cost over an asset’s life. There are three steps of the depreciation process: firstly find depreciable base of the asset, and then estimate asset’s useful life and last choose a method of cost apportionment that best matches revenue flow from the asset.
Depreciation methods allowed under U.S. GAAP include straight-line, units of production, or accelerated methods (sum of digits or declining...

Beka Company owns equipment that cost $50,000 when purchased on January 1, 2008. It has been depreciated using the straight-line method based on estimated salvage value of $5,000 and an estimated useful life of 5 years.
Prepare Beka Company's journal entries to record the sale of the equipment in these four independent situations.
Incorrect.
Sold for $28,000 on January 1, 2011. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3,...

9-198-001
REV: SEPTEMBER 16, 2004
WILLIAM J. BRUNS, JR.
Depreciation at Delta Air Lines and Singapore Airlines (A)
Property, plant, and equipment (PP&E) is a significant asset category of most airline companies. PP&E usually constitutes more than 50% of the total assets of an airline, and depreciation of these assets is a major operating expense. However, unlike many expenses—for example, salaries, the cost of aircraft fuel, the cost of meals and beverages, all of which are significant...

﻿Depreciation at Delta Airlines and Singapore Airlines
1. Calculate the annual depreciation expense that Delta and Singapore would record for each $100 gross value of aircraft.
(a) For Delta, what was its annual depreciation expense (per $100 of gross aircraft value) prior to July 1, 1986; from July 1, 1986 through March 31, 1993; and from April 1, 1993 on?
Prior to July 1: (100-10)/10 = $9 annual depreciation
From July 1, 1986 through March 31, 1993: (100-10)/15 = $6 annual depreciation...

﻿1. Compare Depreciation Accounting Policies between Aviator and Eagle
1.1 Similarity
The common point between Aviator Airways Ltd and Eagle Airlines Ltd is that both of them use the straight line method of depreciation. The costs of an asset less its estimated residual value can get the depreciable amount. Then the depreciable amount is over the estimated useful life of the asset to gain the depreciation expense per period.
Due to the simplicity of the straight line method of...

﻿Comprehensive Problem 1
c) Notes to the Financial Statements:
1. The company uses the straight-line depreciation method. The rental equipment is estimated to have a useful life of eight years. Thus, the monthly depreciation of the rental equipment is 240,000/96, or $2,500 per month.
2. The note payable to Rent-It is good for one year. $100,000 and the accumulated interest are due on November 30, 2012. The account payable for office supplies is due in thirty days, or January 2, 2012. The...

Use of Accelerated Depreciation Methods Allows Shifting of Income
The past two decades of tax law have created more opportunities than ever for business owners to defer tax amounts. Today, it is common practice for businesses to rely on accelerated depreciation to help lessen the burden of taxes imposed on corporate profits, and also shift their income to ethically maximize financial growth. For the purpose of accounting, accelerated depreciation intends to reflect how much of the...

According to the Generally Accepted Accounting Principles, T-Shirts by Tommy can account for the accident is to record an extraordinary item. Using the definition from our Intermediate Accounting textbook, extraordinary events are defined as, " events and transactions that are distinguished by their unusual nature and by the infrequency of their occurrence" (Keiso). Because of the nature of the plane crash, and the fact that these types of accidents happen very rarely, it can definitely be...

﻿N/S
FIRST NAME
SURNAME
REGISTRATION NUMBER
1
2
NKURUNZIZA
Alphonse
PSF20114402
3
NSABIMANA
Anselme
PSF20114652
4
NSABIMANA
Noel
PSF20114655
5
NSANZAMAHORO
Olivier
The chosen enterprise is Bralirwa ltd. First part of our assignment report focus on description and nature of business of bralirwa ltd, its vision, mission, strategic plan and policies need to achieve those goals. Second part is about financial statement of bralirwa ltd from 2010 to 2013 and...

Corporate Finance: The Core (Berk/DeMarzo) Chapter 7 - Fundamentals of Capital Budgeting
1) Which of the following statements is false? A) Because value is lost when a resource is used by another project, we should include the opportunity cost as an incremental cost of the project. B) Sunk costs are incremental with respect to the current decision regarding the project and should be included in its analysis. ...

﻿Chapter 1
1. In a contest ,all twenty finalists were given cash prize.The first winner was given RM860 , the second RM 800 ,the third RM740 and so on.Calculate the total amount of money awarded to all the finalists.
Solution:The prizes are RM860,RM800 ,RM740…..
It is an arithmetic progression .The first term a=rm860 , common difference d=-60 and n=20. The total amount given is
Sn = n/2[ 2a + (n-1)]
S26 =20/2[ 2(860) +(20-1)(-60)]
=RM5800
The amount is RM 5800
2. Find the minimum number...

﻿ACCT 221 (Principles of Accounting II) FINAL EXAM – Latest One
IF You Want To Purcahse A+ Work then Click The Link Below For Instant Down Load
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IF You Face Any Problem Then E Mail Us At JOHNMATE112[email protected]
Part A.
On January 1, 2014, Flip Corporation had 560,000 shares of $1 par value common stock issued and outstanding. There was a $3,000,000 balance in the Retained Earnings account at the...

1. What is the nature of business undertaken by the company?
OSIM is a Singapore-based international brand marketing business famous for its flagship luxury massage chairs that aims to be the world's leading healthy lifestyle product manufacturers. It has a wide product line that is diversified across four business themes: Health, Hygiene, Nutrition and Fitness. Its activities involve marketing, franchising and selling. OSIM is a public listed company listed in the Singaporean Stock Exchange....

Company Overview
JB Hi-fi was established by John Barbuto (JB) in 1974 and opened its first shop in Melbourne. In 1983, it was sold to Bouris and Rodd who expanded the company and, later on, sold the majority of their holding to a private equity, Next Capital Pty Limited. The company’s share was floated in Australian Stock Exchange in 2003 at IPO price of $1.55.
JB Hi-Fi, has diversified its business from predominantly selling music CDs, and is now a major retailer for televisions,...

﻿IAS 16 PROPERTY, PLANT AND EQUIPMENT
HISTORY OF IAS 16
August 1980
Exposure Draft E18 Accounting for Property, Plant and Equipment in the Context of the Historical Cost System
March 1982
IAS 16 Accounting for Property, Plant and Equipment
1 January 1983
Effective date of IAS 16 (1982)
May 1992
Exposure Draft E43 Property, Plant and Equipment
December 1993
IAS 16 Accounting for Property, Plant and Equipment (revised as part of the 'Comparability of Financial Statements' project)
1 January 1995...

Chapter 9
Property Acquisition and Cost Recovery
McGraw-Hill Connect Homework Answers
40. [LO 1] Emily purchased a building to store inventory for her business. The purchase price was $760,000. Beyond this, Emily incurred the following necessary expenses to get the building ready for use: $10,000 to repair the roof, $5,000 to make the interior suitable for her finished goods, and $300 in legal fees. What is Emily’s cost basis in the new building?
$765,300 cost basis,...

﻿Finance 7A10
Solutions: End-of-Chapter questions
Chapter 7 (2nd Edition)
Questions are: 2, 9, 15
7-2. Kokomochi is considering the launch of an advertising campaign for its latest dessert product, the Mini Mochi Munch. Kokomochi plans to spend $5 million on TV, radio, and print advertising this year for the campaign. The ads are expected to boost sales of the Mini Mochi Munch by $9 million this year and by $7 million next year. In addition, the company expects that new...

﻿A311: Final Exam Review
Chapter 10
1. Interest Capitalization
Delmar Corporation borrowed $200,000 at 12% interest from state Bank on January 1, 2013, for the specific purpose of constructing special-purpose equipment to be used in its operations. Construction on the equipment began on 1/1/13, and the following expenditures were made prior to the project’s completion on 12/31/13:
Expenditures Made in 2013
January 1
$100,000
April 30
150,000
November 1
300,000
December 31
100,000
Total...

Financial Reporting & Analysis April 19th, 2013
Case Study- Harnischfeger Corporation
1. Describe clearly the accounting changes Harnischfeger made in 1984 as stated in Note 2 of its financial statements.
The accelerated depreciation method was changed from to straight-line on all company assets that caused to increase after-tax net income for 1984 by $11.005 million. The cumulative effect of change in 1984 there will...

HERNISCHFEGER CORPORATION CASE ANALYSIS
1. Describe clearly the accounting changes Harnischfeger made in 1984 as stated in Note 2 of its financial statements
In 1984 they changed the depreciation method from accelerated methods to the straight-line for financial reporting purposes. This change included a adjustment of the residual values on certain machinery and equipment. They also included the products purchased from Kobe Steel, LTD and sold by them in their net sales. Moreover, they...

Kellee Hensley
Finance
Conover
December 3, 2012
US Gaap VS Ifers
“A tectonic shift in accounting rules from US GAAP to the international standard, IFRS, may be under way.” (Rueschhoff 331). Many fear the Securities and Exchange Commission will make it mandatory, which could mean accountants across America might need to be re-educated. A single international standard is meant to simplify the world of accounting, however, applying a foreign standard could be a solution more...

1. On average, how many rooms must be rented each night in season for the hotel to
breakeven?
We calculate the blended rate for each of the wings using the single room and double room rates and occupancy ratios.
The daily expense during the season is -
Hence to break even we must have occupancy to cover $1,153.42 in costs on a daily basis. Assuming equal occupancy (x) in East Wing and West Wing we get the equation as
(24*30 + 19*50)*x = 1153.42. We get occupancy as 69.1 percent....

﻿Week 3 Problem Set
Answer the following questions and solve the following problems in the space provided. When you are done, save the file in the format flastname_Week_3_Problem_Set.docx, where flastname is your first initial and you last name, and submit it to the appropriate dropbox.
Chapter 7 (pages 225–228):
1.
Your brother wants to borrow $10,000 from you. He has offered to pay you back $12,000 in a year. If the cost of capital of this investment opportunity is 10%, what is its NPV? Should...

﻿INTRODUCTION
The accounting concepts are rules and guidelines which the accountant follows and uses when deciding between differing options to make. They help to ensure the accounting information is presented accurately and consistently. All formal accounting statements should be created, preserved and presented according to the concepts and conventions’. The following will look at each of the concepts and conventions and relate them to the profit and loss account for a sole trader....

﻿Quiz 09
Submission View
Question Set
Question 1
0.5 / 0.5 points
Goodwill
is only recorded when generated internally.
can be subdivided and sold in parts.
can only be identified with the business as a whole.
can be defined as normal earnings less accumulated amortization.
Question 2
0.5 / 0.5 points
All of the following are intangible assets except
land.
patents.
copyrights.
leaseholds.
Question 3
0.5 / 0.5 points
The cost of a long-lived asset (except land) is expensed...

﻿ACO01 – FINANCIAL ACCOUNTING
MOCK EXAM
Time: 90 minutes
PART 1. MULTIPLE CHOICE QUESTIONS (40 points)
This is a multiple choice part containing 20 questions. Each question is followed by THREE suggested answers – only one of which is correct. You will score 2 points for each correct answer. You will not lose any mark for wrong answers. You may attempt as many questions as you wish.
1. Which of the following items would most likely be classified as an operating activity?
A. Issuance of...

Roles of the Financial Manager
As already discussed, a company's strengths are its assets, either tangible or intangible. These assets include everything that a company own that, directly or indirectly, translates to cash. For example, physical equipment such as cars, computers, machinery and office equipment such as chairs, tables, copiers, etc. On the other hand, a company's workforce, patents, goodwill, etc. are some intangible assets. All this, in addition to cash, building and land are...

Exam 2
Ch 6
p 26. If you invest $50,000 to earn 8% interest, which of the following compounding approaches would return the lowest amount after one year? (you aren’t earning interest on interest)
a. Daily.
b. Monthly.
c. Quarterly.
d. Annually.
p41. An amount is deposited for eight years at 8%. If compounding occurs quarterly, then the table value is found at (adjust rate and number of periods!)
a. 8% for eight periods.
b. 2% for eight periods.
c....

go to this address to get the tutorial: http://homeworkfox.com/tutorials/business/512/acc-423-week-5-wileyplus-assignment-exercises/
ACC 423 Week 5 WileyPlus Assignment - Exercises
Business - Accounting
ACC423 P13-9 P20-4 E21-7 P22-6
P13-9 (Premium Entries and Financial Statement Presentation) Sycamore Candy Company offers
a CD single as a premium for every five candy bar wrappers presented by customers together with
$2.50. The candy bars are sold by the company to distributors for...

Balls and Bats, Inc. purchased equipment on January 1, 2005, at a cost of $100,000. The estimated useful life is 4 years with a salvage value of $10,000.
For this assignment you are to complete the following tasks:
 Prepare two different depreciation schedules for the equipment  one using the double-declining balance method, and the other using the straight-line method. (Round to the nearest dollar).
 Determine which method would result in the greatest net income for the year ending...

﻿Corporate Accounting Assignment
Abstract
In this report, we compare and contrast the depreciation accounting policies of the two company provided in the case study, Aviator and Eagle. With the results of calculation, we also made comparative comments on the methods. We further our understanding by analyzing an additional company’s depreciation policy and also give an in general summary of the significance of depreciation policy at the end.
Q1
According to AASB116, there are for...

Required:
1. How should Smooth Sailings’ management perform the recoverability test for the cruise ship as of December 31, 2010?
The following are the required steps to identify, recognize and measure the impairment of a long-lived asset (group) to be held and used:
* Indicators of impairment — consider whether indicators of impairment are present.
* Test for recoverability — If indicators are present, perform a recoverability test by comparing the sum of the estimated undiscounted...

ACC 213 FINAL EXAM
1. Calculate the salvage value of a forklift purchased Jan 1, 2009 for $40,000, with a 7 year useful life, that uses straight line depreciation and has a annual depreciation of $5,000.
5,000= (40000 – X) / 7 (x or salvage value) = 5,000
Depreciation = (cost- salvage value)/ estimated useful life
2. On January 4, 2007, Bloomberg Company purchased new equipment for $204,000 that had a useful life of four years and a salvage value of $20,000.
a. Prepare...

Dear Mr. Mathur,
Warm greetings of the day!!
Would like to thank you for sparing your precious time and the kind opportunity provided to us. In regards to moving ahead in establishing a warm relationship with your esteemed organisation, would request you to kindly provide the following documents so we can have the credit approved:
* Audited Financial Reports for previous 2 years
* Board Resolution or P.O.A
* Share holding pattern
* MOA & AOA, Certificate of...

Substantive Issue
Ocean Carriers is a shipping company evaluating a proposed lease of a ship for a three-year period to a customer, beginning in 2003. The proposed leasing contract offers very attractive terms, but no ship in Ocean Carrier’s current fleet meets the customer’s requirements. The firm must decide if future expected cash flows warrant the considerable investment in a new ship.
Objective of Case Assignment
To provide your team an opportunity to make a capital budgeting...

THE UNIVERSITY OF HONG KONG
School of Economics and Finance
FINA1001: Financial Statement Analysis
Second Semester 2009-2010
Dr. Kam-Ming Wan
Midterm Examination (90 minutes)
April 1, 2010 10:40a.m.(12:10p.m.
Candidates may use any self-contained, silent, battery-operated and pocket-sized calculator. The calculator should have numeral-display facilities only and should be used only for the purposes of calculation. It is the candidate’s responsibility to...

Property Plant and Equipment
Carrying amount of the Property, Plant and Equipment at reporting date of JB-HiFi
According to AASB 116 Property, plant and equipment held beyond the normal operating cycle of entity are deemed to be non-current assets. Here’s the extract from the report.
[pic]
Descriptions: Carrying Amount of PPE is $163,982, 000, which is made up of the figure of plant &equipment which is $106,560,000 add to the Leasehold improvements which is $57,422,000 come out as the...

Eagle Impairment Case
Question 1
IFRS
According to the facts provided for Eagle in Italy, we assume that the commercial building, which represents a cash-generating unit (CGU), meets the requirement for a recoverable test under IFRS. The impairment loss is required when the building’s book value exceeds the higher of the asset’s value-in-use and fair value less costs to sell.
Carrying value 1,100 > 900 Higher of Value in use (900)...

﻿Chapter 12 Homework Assignments (questions 1-6 each has 3 and #7 2 points)
Please Post Your Answers on Ch 12 Dropbox (D2L) Must Show All Work
1. Which of the following is NOT a relevant cash flow and thus should not be reflected in the analysis of a capital budgeting project? C
a. Changes in net working capital.
b. Shipping and installation costs.
c. Sunk costs that have been expensed for tax purposes.
d. Cannibalization effects.
e. Opportunity costs.
2. Which of the following statements is...